Farfetch profits fall 23% in second quarter
Platform for selling luxury fashion admits it is restructuring costs and already has its eye on 2023, after signing new commercial agreements.
Farfetch ended the second quarter with profits of $67.67 million (€67.99 million). The luxury fashion platform’s earnings declined 23% compared to the same period last year. The company assumes it is cutting costs in its structure while already anticipating targets for 2023.
“This makes me extremely bullish for 2023, a year when we will lap the closure of our Russia operations, expect China to turn into a tailwind, and will start to see the fruits of large deals signed this year with Reebok, Neiman Marcus Group and Salvatore Ferragamo. These 2023 vectors of growth, combined with the rationalisation of costs we are implementing this year, make me very confident about our 2023 top line, profitability and cash generation,” said José Neves, Farfetch Founder, Chairman and CEO, in a statement.
Despite revenue increasing by 10.7%, EBITDA margin worsened to minus 4.9%, when in Q2 2021 it was minus 4.7%.
Gross Merchandise Value (GMV) increased 1.3% year-over-year (or increases 7.6% year-over-year at constant currency) to $1 billion.
Farfetch’s Q2 results were released after announcing the acquisition of a 47.5% stake in YOOX Net-A-Porter (YNAP), part of Richemont’s group. Businessman Mohamed Alabbar will hold 3.2% through his investment vehicle Symphony Global.
